Florida residents who experience hard times financially often receive threats from creditors to the effect that they will be sued and a portion of their income will be taken directly out of their paychecks. If an employer is served with a Writ of Garnishment, it is bound by law to remove the money from an employee’s wages. When your financial situation is already dire, the last thing you need is a wage garnishment that further depletes precious monetary resources.
Fortunately, filing for either Chapter 13 or Chapter 7 bankruptcy can serve two important functions. The first is that it could provide a resolution to your current financial situation. Second, and perhaps most importantly for those whose wages are being garnished, is the stay of execution. During the proceedings, creditors are not allowed to conduct any debt collection activities — which puts a stop to any wage garnishments until the bankruptcy is resolved.
You do not have to wait for your paychecks to be garnished. Even if you have been threatened with a lawsuit or garnishment, filing for bankruptcy could help. The debt that might give rise to legal action could be discharged or otherwise dealt with during the case. This would keep the income you work hard for in your pocket instead of going to a creditor.
Many Florida residents end up having financial trouble at one point or another in their lives. Between the housing market crash and recession, our state was hit particularly hard. Debts can quickly get out of control under the best of circumstances, but under these conditions, it is not surprising that many people find less in their paychecks due to a wage garnishment. Fortunately, there is a way to rectify the situation and get a fresh financial start.